Corporate Plans

CJA Strategies

CJA Solutions


Would you like to buy life insurance on a tax-deductible basis?

Would you like to provide post-retirement medical benefits on a tax-deductible basis?

Would you like to provide your employees with valuable benefits?

Are you concerned about estate taxes?


THE TITANIUM PLAN:  A Single-Employer Welfare Benefit Plan

The Titanium Plan is designed to ensure that a client has sufficient funds to provide for their medical care and that of their spouse and dependents after retirement.  We cannot predict the health of our clients.  However, we can help guarantee that they will have the money to pay for quality medical care as they get older.  Medical costs are skyrocketing, and people are living longer which means that our clients need to plan as efficiently as possible these growing expenses.  The Titanium Plan is a customized welfare benefit plan that provides pre- and post-retirement death benefits and post-retirement medical reimbursement benefits.

Welfare Benefit Plans have been around since the 1920’s and are an effective way to provide for an employee’s health and welfare with tax-deductible dollars.  These plans offer creditor protection and flexibility in contributions.


SECTION 79:  Providing Permanent Benefits for Employees

The Concept:  Many employers offer group term life insurance to their employees.  Typically, this amount is limited to $50,000 of coverage and is generally tax-free.  But key-employees and owners often need permanent coverage and higher coverage amounts. 
Adding a permanent benefit to a group term life insurance program can help owners attract, retain, and reward key employees and owners.  Using the guidelines of Internal Revenue Code Section 79, a corporation can potentially use pre-tax dollars to provide tax-advantaged benefits to participating employees.

Why it Works:  Section 79 of the IRC permits a corporation to provide up to $50,000 of group term life insurance for full time employees at no cost to the employee, since the cost of this benefit is fully deductible by the corporation. 

The treasury regulations under Section 79 provide that group term insurance can include a “permanent benefit.”  The cost of this permanent benefit that is paid by the corporation will appear on the employee’s W-2 as “other compensation.”  This amount that is includable in taxable income to the employee is typically equal to 60-65% of the premium.  Therefore, the net result is tax leverage on 35-40% of the contribution. 

Although all employees have the right to choose the type of coverage they desire, in most plans, rank and file employees opt for non-permanent coverage to minimize their tax liability and key employees and owners elect the permanent benefits.  This allows key employees and owners to reap the benefits of the plan with minimal cost associated with rank and file employees.



Life insurance is a crucial part of any high net-worth client’s comprehensive financial portfolio, but ensuring adequate life insurance coverage may require considerable premium payments.  Premium financing is an alternative for high net-worth clients who do not want to liquidate assets to pay for life insurance premiums.  With premium financing, premiums are borrowed from a third-party lender, minimizing out-of-pocket expenses for the client.  Premium financing can be a multi-faceted process and complex sale, but we’re here to provide you with the support and resources you need to grow your business with this alternative and efficient solution for leveraging life insurance premiums.



Captive insurance was developed to address the inherent risks of business operation, while providing business owners with additional and substantial benefits beyond those available through the purchase of traditional commercial insurance. 

A captive insurance company is essentially an “in-house” insurance company created for the primary purpose of insuring the risks of its parent and/or affiliated companies.  Establishment of a captive allows the parent company to take control of its insurance needs by insuring meaningful risks for which coverage may not be available in the commercial insurance market.  Often this can be accomplished at a reduced cost to the parent company. 

Because the captive and the parent company share the same owner, the captive structure offers the potential to act as an additional profit center.  A captive that is properly established and managed also offers favorable tax considerations to the parent company, increasing the captive’s value as a wealth preservation and transfer tool.

Captive insurance is a proven strategy for risk management that large corporations have employed for years.  Many Fortune 500 companies and industry groups have developed their own captives and several well-known insurance companies got their start as captives.  Captive insurance is becoming an increasingly practical alternative for small to mid-size business owners.


Looft & Associates is dedicated to guiding business owners through the process of establishing and managing an appropriate benefit package from start to finish.